COMPLETE LIQUIDATION OF THE ESTATE OF KENNETH D MACHACEK, KDM HOTOIL & KDM LEASING

PERMIAN INTERNATIONAL ENERGY SERVICES, LLC
Auction Terms and Conditions of Sale
1. Conditions of Sale:
ALL PROSPECTIVE PARTICIPANTS ARE URGED TO TAKE NOTICE OF AND THOROUGHLY READ THE CONDITIONS OF SALE FOR THE AUCTION PUBLISHED WITHIN THE AUCTION SALE CATALOG. AUCTIONEER RESERVES THE RIGHT, IN ITS SOLE DISCRETION, TO SUSPEND ANY PERSON WHO VIOLATES THESE CONDITIONS IN ANY MANNER FROM FURTHER PARTICIPATION IN ANY SALE CONDUCTED BY AUCTIONEER. LOTS WILL BE PRESENTED INDIVIDUALLY, AND EACH LOT IS A SEPARATE SALE.
2. Bidder Registration:
a. Any person intending to bid at a Permian International Energy Services, LLC ("PI") must be pre-registered and have a Buyer Number assigned by PI prior to placing a bid. Buyer names will remain confidential.
b. Persons bidding on behalf of a third party must register to bid and will be held responsible for all such purchases.
c. Bidders may bid on items they own or are owned by a third party they represent. Each auction lot is sold with a reserve unless the Auctioneer announces otherwise.
d. PI and Auctioneer reserve the right to refuse any person a bidder number and may revoke a Bidder's privileges to bid or purchase at any time.
e. By participating in a PI auction, Bidder expressly agrees to these terms and conditions.
Auctioneer reserves the right, in its sole discretion, to accept or reject the request for a Buyer Number.
3. Indemnification of PI and Seller(s):
a. Bidders enter the Auction Site at their own risk. The Auction Site shall include any location where an auction lot to be sold may be located for inspection and any facility where the bid calling is located.
b. Bidders and their agents, officers, employees, and representatives agree to indemnify and hold harmless PI, its owners, officers, agents, employees, and representatives and Seller's owners, officers, agents, employees, and representatives from any damages, injury, or death resulting from any cause occurring on or related to the Auction Site.
4. Payment Terms:
a. All purchases shall be Paid in Full in negotiable U.S. funds on the day of auction unless expressly agreed in writing by PI prior to commencement of auction.
AUCTION TERMS AND CONDITIONS OF SALE
b. No drafts, credit cards, or ACH payments will be accepted.
c. Accepted forms of payment include wire transfers and company and personal checks if accompanied by an irrevocable Bank Letter of Guarantee unless Bidder is pre-qualified by PI prior to the date of auction.
d. Buyer waives the right to stop payment on any check or monies given as payment.
e. Buyer agrees to pay an administrative fee of five percent (5%), or other amount as may be stated in the auction sale catalog, to be added to the auction sales price of each lot. An additional fee may be assessed for successful internet bids if internet bidding is available. See PI webpage for details of each auction.
f. Buyer may receive lots purchased upon payment of funds due according to checkout procedures outlined in the Auction Sale Catalog.
g. PI reserves the right to hold any purchase until funds have been confirmed and all documentation has been completed by Buyer.
h. PI may hold all purchases by a Buyer approved for partial payment until the full amount has been paid. A two percent (2%) late fee will be charged if full payment is not received within five (5) business days following the auction.
5. Sales Tax:
a. Buyer is responsible for payment of any and all sales and use taxes due on the purchased lots.
b. PI will add the applicable sales and use taxes to its invoice unless Buyer provides valid proof of exemption issued by the appropriate state agency.
c. To claim an exemption from sales tax, Buyer must meet the exemption requirements applicable to the location where the Auction is held.
d. Buyer agrees to pay or reimburse PI for payment of any sales and use taxes assessed by a taxing authority if not collected at the time of payment.
6. Resale of Merchandise:
a. In the event a Buyer requests PI to resell a lot at the same auction, Buyer must make up any deficit between the initial sales price and the resale price.
b. Should a Buyer fail to pay for all purchased lots at an auction, PI reserves the right to hold or reclaim and resell any and all items purchased by Buyer to recover any unpaid portion of the total amount owed. Buyer agrees to allow PI to deduct from the proceeds of a resale, any unpaid portion of the initial sales total and all expenses incurred by PI in its collection and resale efforts, including attorney's fees, transportation fees, auction expenses, and commission on the resale.
c. Lots remaining at the Auction Site more than thirty (30) days after the date of the auction will be considered abandoned property and may be resold by PI at the next available opportunity.
7. Auctioneer is Final Authority:
a. Sale is final when the Auctioneer calls "sold" at the fall of the gavel.
AUCTION TERMS AND CONDITIONS OF SALE
a. Buyer is responsible for arranging and paying for all aspects of arranging load out and transportation of purchases from the Auction Site.
b. Neither PI nor Seller have any agency relationship with Buyer and have no responsibility to Buyer for load out or transportation services.
c. Neither PI nor Seller are to be considered the Shipper, Forwarder, Consignor, or Consignee on any shipping or export documents.
d. All lots must be removed from the Auction Site during the posted Checkout Period as listed in the Auction Site Directions and Checkout Info section of each particular Auction Sale Catalog. The charge for late removal is $25 per lot per day.
14. Entire Agreement:
The catalog terms and conditions shall be governed by, construed, enforced, and interpreted by the laws of the State of Texas.
AUCTION TERMS AND CONDITIONS OF SALE
Checkout Procedures:
Buyer shall present the "Acknowledgement of Purchase" form signed by Buyer.
At the time of payment for purchases, Buyer will receive an invoice and supporting documents covering the purchases.
Note: PI may place a "hold" on any items pending verification of receipt of good funds.
Buyer must present a Picking Ticket to the Checkout Supervisor at each yard where the purchase items are collected.
Buyer or Buyer's loading and transportation services provider may be required to provide appropriate certificate of insurance prior to entering certain yards. Check document package before dispatching trucks.
All items must be inspected, counted, and approved for removal by the Checkout Supervisor.
All counts, including pipe or multi-unit lots, must be verified by Buyer's representative and the Checkout Supervisor at the time of checkout.
Partial removal of any lot or lots will be documented on the Picking Ticket.